| Thu 24 May 2012, 12:58 | | MNY - Moneyweb Holdings Limited - Reviewed interim financial results for the |
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MNY
MNY
MNY - Moneyweb Holdings Limited - Reviewed interim financial results for the
twelve months ended 31 March 2012
Moneyweb Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1998/025067/06)
(JSE code: MNY ISIN code: ZAE000025409)
("Moneyweb" or "the company" or "the group")
REVIEWED INTERIM FINANCIAL RESULTS FOR THE TWELVE MONTHS ENDED
31 MARCH 2012
Condensed Group Statement of Comprehensive Income
Notes Reviewed Unaudited Audited
12 months 6 months 12
months
31-Mar-12 30-Sep-11 31-Mar-
11
R`000 R`000 R`000
Revenue 36 670 15 987 35 367
Loss before investment income, (3 967)
fair value adjustments, depreciation,
amortisation, impairments and exchange (2 858) (2 159)
gains/(losses)
Depreciation and amortisation (1 510) (719) (1
212)
Investment income 1 445 686 840
Finance costs (77) - (139)
Fair value adjustment of other 99 69 1
investment and other financial asset
Impairment of financial assets (117) - (116)
Impairment of joint venture (355) - -
investment
Foreign exchange gains /(losses) 8 (81) (112)
Loss on write-off of intangible asset - - (843)
Net loss before taxation (4 474) (2,903) (3 740)
Taxation 207 - (287)
Profit from joint ventures 496 211 271
Net loss for the period (3 771) (2 692) (3 756)
Other comprehensive income
Exchange differences on translating 162 166 (32)
foreign operations
Total comprehensive loss for the (3 609) (2 526) (3 788)
period
Reconciliation of headline loss
Net loss for the period (3 771) (2 692) (3 756)
Loss on write-off of intangible asset - - 843
Impairment of joint venture 355 - -
investment
Headline loss (3,416) (2 692) (2 913)
Loss per share (cents) (3.54) (2.52) (3.94)
Headline loss per share (cents) (3.21) (2.52) (3.06)
Number of shares in issue (000`s)
- issued closing (net of treasury) 106 575 106 575 106 575
- weighted average 106 575 106 575 95 352
There are no dilutive instruments in issue.
Condensed Group Statement of Financial Position
Reviewed Unaudited Audited
31-Mar-12 30-Sep-11 31-Mar-
11
Assets R`000 R`000 R`000
Non-current assets
Tangible fixed assets 1 274 1 617 1 988
Intangible assets 2 163 2 543 2 808
Investment in joint ventures 533 1 045 1 334
Other investment 21 15 15
Deferred taxation 560 136 136
4 551 5 356 6 281
Current assets
Trade and other receivables 7 984 12 479 8 838
Other financial asset 16 165 15 614 15 015
Cash and cash equivalents 13 400 8 268 9 209
Income tax paid in advance 1 050 1 216 823
38 599 37 577 33 885
Total assets 43 150 42 933 40 166
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732 32 732
Foreign currency translation reserve (749) (745) (911)
Accumulated loss (4 212) (3 133) (441)
Ordinary shareholders` interest 27 771 28 854 31 380
Current liabilities
Trade and other payables 7 096 6 006 3 748
Deferred revenue 8 283 8 073 5 038
15 379 14 079 8 786
Total equity and liabilities 43 150 42 933 40 166
Net asset value per share (cents) 26.1 27.1 29.4
Net tangible asset value per share (cents) 24.0 24.7 26.8
Condensed Group Statement of Changes in
Equity
Share Share Foreign Accumulate Total
capita premium currency d profit
l translatio
n reserve
R`000 R`000 R`000 R`000 R`000
Balance at 1 April 2010 76 11 712 (879) 4 073 14
982
Total comprehensive income - - (32) (3 756) (3
for the period ended 31 788)
March 2011
Ordinary dividend paid - - - (758) (758)
Ordinary shares issued 31 20 913 - - 20
944
Balance at 1 April 2011 107 32 625 (911) (441) 31
380
Total comprehensive income - - 162 (3 771) (3
for the period ended 31 609)
March 2012
Balance at 31 March 2012 107 32 625 (749) (4 212) 27
771
Condensed Group Statement of Cash
Flow
Reviewed Unaudite Audited
d
12 months 6 months 12
months
31-Mar-12 30-Sep- 31-Mar-
11 11
R`000 R`000 R`000
Cash flows from operating activities
Cash (utilised) / generated by 1 (528) 473 (1 241)
operations
Movements in working capital 4 202 (1 384) 1 211
Cash generated /(utilised) by 3,674 (911) (30)
operating activities
Investment income 1 445 686 842
Finance costs (77) - (139)
Taxation paid (444) (393) (2 053)
Dividend paid - - (758)
Net cash inflows / (outflows) from operating 4 958 (618) (2 138)
activities
Cash flows from investing activities
Acquisition of tangible fixed assets (152) (82) (554)
Investment in other financial asset (1 056) (530) (15 015)
Decrease in investment in joint 801 289 37
ventures
Net cash outflows from investing activities (407) (323) (15 532)
Cash flows from financing activities
Ordinary shares issued - - 20,944
Net cash inflows from financing activities - - 20 944
Net movement in cash and cash 4 191 (941) 3 274
equivalents for the period
Cash and cash equivalents at beginning of 9 209 9 209 5 935
period
Cash and cash equivalents at end of 13 400 8 268 9 209
period
Notes to the Condensed Financial Results
for the twelve months ended 31 March 2012
1. Cash generated by operations
Loss before investment income, (3 967)
fair value adjustments, depreciation, (2 858) (2 159)
amortisation, impairments and exchange
gains / (losses)
Adjustments:
Profit from joint ventures 496 211 271
Impairment of financial assets (117) - (116)
Impairment of joint venture investment (355) - -
Foreign exchange gains /(losses) 8 (81) (112)
Increase in deferred revenue 3 245 3 035 907
Decrease in foreign currency 162 166 (32)
translation reserve
(528)
473 (1 241)
Change of year end
The company has changed its year end from 31 March to 30 June to accord with
its holding company Caxton & CTP Publishers & Printers Limited. These interim
results which are for the 12 months ended 31 March 2012 have been reviewed by
the company`s auditors. The company expects to report its full results for the
15 month period ending 30 June 2012 in August 2012.
Financial results
Revenue increased by 3.6% on a comparative basis from R35.4m to R36.7m. Online
and radio revenues increased by 3.1% year-on-year in a difficult market and
looklocal revenues increased by 9%, the latter being lower than anticipated by
new sites being launched later than planned during the period.
The continued and significant initiatives embarked upon last year to extend
platforms and roll out looklocal, together with the impact of an accrual for
restructuring costs, has resulted in a loss after tax for the period of R3.8m
(2011:R3.8m) and a loss per share of 3.54 cents and headline loss per share of
3.21 cents (2011: 3.94 cents and 3.06 cents respectively).
Notwithstanding the reported loss, the benefits of the strategic initiatives
designed to position the company for future growth are evidenced by the
increased level of deferred revenue which stands at R8.3m at 31 March 2012
(2011:R5.0m). Cash resources and highly liquid investments have increased to
R29.6m at 31 March 2012 (2011: R24.2m) and the group remains debt free.
Operating results
Moneyweb`s core online and radio businesses continued to perform
satisfactorily during the period under review. The flagship Moneyweb.co.za
website posted double digit growth in its audience, benefitting from an
expansion of the South African internet user base triggered by falling
bandwidth costs. Mineweb.com experienced a challenging period as investment in
the content engine co-incided with a decline in audiences from record levels
enjoyed during the resources boom. The contribution from the radio platforms
was stable.
This has been the second year of substantial expenditure in expanding the
company`s operating base. Developing looklocal and the new Moneyweb and
Mineweb Applications ("Apps")for mobile devices continues. The looklocal
network now encompasses 43 websites, each of which is integrated with the
newsroom of a local newspaper. Twelve new looklocal sites were added in the
period under review. The Moneyweb TALK App, primarily an audio-on-demand
service for mobile phones, was soft-launched in the period and has enjoyed
reasonable uptake. The launch of the Moneyweb NOW App for tablets is imminent.
The board decided the company`s management team needs to be domiciled in
Johannesburg. As a result, former CEO Dr Andrew Smith, who is based abroad,
was replaced by the company`s founder Alec Hogg on 1 April 2012. Mr Hogg, who
was on semi-sabbatical for the past two years, has relocated to Johannesburg.
Financial Director Mr Donnelly, also based abroad, is to be replaced by a
locally-based executive at the end of June.
Prospects
Management`s immediate challenge is to initiate fresh revenue streams from
looklocal and its Apps. Moneyweb is also well advanced in negotiations with
the SABC, to deepen existing relationships with its radio stations. A number
of other opportunities are also being investigated to leverage off the
company`s leadership position in online media.
Dividend policy
No dividend has been declared for the interim period.
Post balance sheet events
There are no material events subsequent to the end of the interim period that
have not been reflected in the financial statements or that require further
disclosure.
Basis of preparation
Statement of compliance
The interim financial statements have been prepared in accordance with the
measurement and recognition requirements of International Financial Reporting
Standards ("IFRS") and contain the information required by IAS 34: Interim
Financial Reporting, the AC500 standards as issued by the Accounting Practices
Board or its successor for Interim Reporting and the JSE Listings Requirements
and South African Companies Act.
The accounting policies and methods of computation adopted in the interim
financial statements are consistent with those applied in the annual financial
statements for the period ended 31 March 2011 and are in terms of IFRS.
The consolidated financial statements have been reviewed by the company`s
auditors as reported below.
Basis of measurement
The interim financial statements have been prepared on the historical cost
basis with the exception of certain financial instruments that are stated at
fair value.
Going concern
The interim financial statements have been prepared on the going-concern basis
since the directors have every reason to believe that the company has adequate
resources in place to continue in operation for the foreseeable future.
Review opinion
The group`s auditors, BDO South Africa Inc. have reviewed the interim
financial results for the 12 month period ended 31 March 2012 contained in
this announcement and have issued an unmodified conclusion.
The review opinion is available for inspection at the company`s offices.
Changes to the board
On 15 March 2012 Mr L Sipoyo, a non-executive director, was appointed to the
audit committee and Mr PG Greyling, a non-executive director resigned as a
member of the audit committee but remained a member of the board.
Dr A Smith, CEO and chairman of the board resigned as chairman as of 15 March
2012 and Mr PM Jenkins was appointed as chairman to the board.
As from 1 April 2012, the founder of the business, Mr AB Hogg, an executive
director, replaced Dr A Smith as CEO, who will remain an executive director
until 30 June 2012. The current financial director Mr JM Donnelly will
relinquish his duties on 30 June 2012.
On Behalf of the Board
PM Jenkins
Chairman
24 May 2012
Corporate Information
Non-executive directors: PM Jenkins (Chairman); LW Sipoyo; T Ncube; TD Moolman;
PG Greyling; W van der Merwe
Executive directors: AB Hogg (Chief Exective); JM Donnelly; A Smith
Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196
Postal address: PO Box 8, Melrose Arch, 2076
Company secretary: JM Donnelly
Telephone: (011) 344 8600
Facsimile: (011) 344 8601
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: BDO South Africa Incorporated
Designated Adviser: Vunani Corporate Finance
Date: 24/05/2012 12:58:01 Produced by the JSE SENS Department.
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